Welcome to Madison, Wisconsin!
|Home Page| |Search MLS| |Buyer Tips| |Seller Tips| |My Listings| |Vendors| |Biography| |Links|

Real Estate Definitions

These are definitions related to real estate. The definitions can be very helpful in understanding much of the confusion that comes over people when they are trying to understand what a realtor or a loan officer might be saying. If you have any other words you may need defined, do not hesitate to call me at 608-219-8014.



Impound, or Reserves: The portion of a borrower's monthly payments held by the lender to pay for taxes, hazard and mortgage insurance, lease payments, and other items that will come due.

Income approach: The method of estimating the value of a property by calculating its generated income.

Income property: Real estate developed for the purpose of generating income.

Indemnify: To provide for compensation in the case of loss or damage to property.

Indemnity: The statement of terms under which loss or damage to property will be compensated.

Index: A published interest rate used by lenders to compare the interest rate for an adjustable-rate mortgage (ARM) with that earned by other investments (e.g., the yield on Treasury bills, interest rate on loans from savings and loans institution, etc.), as a result of which the ARM interest rate is adjusted.

Ingress: The right to enter on or over a piece of property.

Insurable Title: A property title which an insurance company is willing to insure against possible claim.

Installment contract, or Contract for deed: A contract for the sale of real estate whereby the buyer is in possession of the property while paying off the purchase price in periodic installments, despite the title being retained by the seller until the future date of final payment.

Insured closing letter: An indemnity provided by a title insurance company to a lender, whereby the title insurance company assumes responsibility in the case that the closing agent does not fulfill the terms of the loan, or misappropriates the loan proceeds.

Insured mortgage: A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage insurance (MI) so that if the borrower defaults on the loan, the insurer compensates the lender the lesser of the loss incurred or the actual insured amount.

Interest rate buydown plan: An arrangement made for the initial years of a mortgage whereby the seller (or any other party) deposits money into an account that is then released toward the monthly payments on the mortgage, thereby bringing the mortgagor's interest rate down below the actual interest rate.

Interest rate ceiling: The maximum interest rate for an adjustable-rate mortgage (ARM), as specified in the mortgage note.

Interest rate floor: The minimum interest rate for an adjustable-rate mortgage (ARM), as specified in the mortgage note.

Interim financing: A temporary or short-term loan, often made during the construction phase of a building project, and usually replaced by a permanent long-term mortgage.

In testate: The condition of dying without leaving a will. The description of an estate without a will.

Involuntary lien: A claim or charge against property placed without the consent of the property's owner.

Keller Williams real estate agency serving Madison and the southern Wisconsin area

An Independent Member Broker
Member of the Realtors Association
Open House
Relocation Information
Madison Area Information
Free Calculators
Contact Information

Nataliya Flannery
My Cell Phone: (608) 219-8014
My Fax Number: (608) 831-0825
My Email: natflannery@kw.com
Alternate Website: Nataliya Flannery
- Madison Real Estate

Keller Williams-West Madison:
3 Point Place
Madison, WI 53719
Last Updated: March 23, 2007 All information copyright madison-real-estate.net 2005, Webmaster